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Solana’s SOL Could Hit $200 By Month-End, Predicts Hedge Fund Founder

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Solana’s SOL Could Hit 0 By Month-End, Predicts Hedge Fund Founder

QuickTake:

  • Solana’s SOL is leading the crypto market rebound, potentially reaching $200 by the end of May.
  • The token is supported by multiple catalysts, including active meme coin and DeFi trading, upcoming network upgrades, and growing interest in restaking.
  • SOL achieved its highest price in over a month at $170, significantly outperforming other major cryptocurrencies.

Solana’s native token (SOL) has been making impressive gains in the cryptocurrency market, outshining most major digital assets and setting its sights on new cycle highs. On Friday, SOL hit a peak of $170, the highest price it has seen in over a month, before settling slightly lower at $166. This surge represents a nearly 7% increase over the past 24 hours and a remarkable 40% rise from the crypto market’s local bottom in early May, where Bitcoin (BTC) had dropped to $56,000.

The recent performance of SOL stands out in the broader crypto market. Over the past week, SOL has gained 17%, marking the strongest performance among the top cryptocurrencies tracked by the CoinDesk 20 Index (CD20), second only to Chainlink’s (LINK) rise, which benefited from news of a fund tokenization pilot partnership.

Daniel Choung, co-founder of the digital asset hedge fund Syncracy Capital, expressed his optimism about SOL in a post on X (formerly Twitter). He highlighted the token’s resilience and growth during the current market cycle, stating, “Strength on SOL has been incredible on this bounce. Very clear this is still the best trade of this cycle.” Choung confidently predicted that SOL could reclaim the $200 level by the end of the month and potentially set new record highs in the near future. It’s worth noting that SOL reached its all-time high of $260 in November 2021, during the peak of the previous bull cycle.

Several factors are driving SOL’s impressive performance. One major catalyst is the active trading of meme coins on the Solana blockchain, which has created a buzz and attracted significant trading volume. Additionally, strong stablecoin volumes and robust activity in decentralized finance (DeFi) projects have contributed to the token’s upward momentum.

Choung also pointed out the upcoming network upgrades that are expected to enhance Solana’s performance. A key development on the horizon is the introduction of Firedancer, a secondary chain client developed by Jump Crypto. Firedancer aims to improve the network’s efficiency and scalability, potentially making Solana even more attractive to developers and users.

Moreover, there is a growing interest in shared cryptoeconomic security, commonly referred to as restaking, within the Solana ecosystem. David Shuttleworth, a research partner at Anagram, mentioned in a direct message on X that this trend is gaining traction, further boosting confidence in Solana’s future prospects.

As Solana continues to benefit from these multiple catalysts, the prospects for SOL remain strong. The combination of vibrant meme coin trading, robust DeFi activity, impending network upgrades, and the increasing adoption of restaking practices positions SOL as a promising asset in the cryptocurrency market.

The crypto community will be closely watching SOL’s performance in the coming weeks, anticipating whether it can achieve the $200 mark by the end of May and potentially surpass its previous all-time high. With a strong foundation and a series of positive developments, Solana appears poised for continued growth and success in the evolving digital asset landscape.

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